In a strategic move that underscores its commitment to sustainability, Inditex, the parent company of Zara, has acquired a stake in the U.S.-based sustainable agriculture startup Galy. This investment marks a significant step forward in integrating innovative technologies into the fashion industry, particularly in sustainable textile production.
Why Galy?
Founded in 2019, Galy is leading the way in developing lab-grown cotton from plant stem cells. This groundbreaking process promises to drastically reduce the environmental impact of traditional cotton farming. Lab-grown cotton requires significantly less water, land, and chemicals, and it emits fewer greenhouse gases. These benefits align perfectly with Inditex's sustainability goals.
Oscar Garcia Maceiras, CEO of Inditex, announced this investment during the company’s annual assembly, highlighting the importance of such technologies in meeting their ambitious sustainability targets. This move builds on previous investments, such as the 2022 stake in Circ, a company focused on textile recycling, and partnerships with producers of recycled fibers.
Inditex and Textile Recycling Initiatives
Inditex has been actively investing in textile recycling startups to further its sustainability goals. In 2022, the company signed a three-year, 100 million euro ($104 million) agreement with Finland’s Infinited Fiber, securing 30% of the company's recycled fiber output. Additionally, Inditex has invested in Circ, a U.S.-based company that specializes in recycling textiles back into new materials.
In a collaborative effort with industry competitors like H&M and Mango, Inditex has helped establish a clothing waste management association in Spain. This initiative is in preparation for upcoming EU legislation, set to take effect in January 2025, which will mandate the separate collection of textile waste by member states.
Conclusion
Inditex’s stake in Galy is more than just an investment—it's a statement of intent. By supporting startups like Galy, Inditex is positioning itself as a leader in sustainable fashion, demonstrating that environmental responsibility and business success can go hand in hand. This move not only helps Inditex meet its sustainability goals but also sets a precedent for the entire industry, encouraging other fashion giants to follow suit.